IThe following information applies to the questions displayed below Markus Compa

Question

IThe following information applies to the questions displayed below Markus Company's common stock sold for $575 per share at the end of this year. The company pald a common stock dividend of $069 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts recelvable Inventory Current assets Total assets Current liabilities Total llablities Common stock. $1 par value Total stockholders' equity Total iabilities and stockholders equity Ending Beginning Balance Balance $ 51000 $ 46,000 $ 98,000 $ 70.000 S 77800 $ 98.000 $ 226,800 $ 214.000 $ 868.000 $ 956.200 S 90,000 $96.000 S 218.000 196.200 $ 172.000 $ 172.000 $ 650.000 S 760.000 S 868.000 $ 956.200 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $ 1160.000 $ 672.800 s 487.200 S352.750 $ 17000 S 111.800 1. value 1.00 points Required: 1 What is the earnings per share? (Round your answer to 2 decimal places.) mings per share

Explanation / Answer

1. Earning per share = Net income/share outstanding

                             = 111800/172000

Earning per share = 0.65 per share

2) Price earning ratio = MPS/EPS

                               = 5.75/.65

Price earning ratio = 8.85

3) Dividend payout ratio : DPS*100/EPS

                                    = 0.69*100/0.65

Dividend payout ratio = 106.15%

Dividend yield ratio = DPS*100/MPS

                             = 0.69*100/5.75

Dividend yield ratio = 12%

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